With creative PAC strategies, campaign cash flows right around state’s limits

July 27--While nearly all politicians say they favor "transparency," and the state has passed laws trying to make it easier to track sources of campaign money, in reality, it's getting harder and harder to determine who is footing the bill.

Some blame the U.S. Supreme Court's Citizens United decision, which overturned limits on how much independent groups can spend in an election. But with the continuing rise of political action committees and super-PACs -- not to mention the "social welfare" organizations that don't even have to report who their contributors are -- it can all look like a shell game for those trying to follow the money.

New Mexico's campaign contribution limits went into effect two years ago, but the practice of big PACs funneling money into smaller PACs has become a way to get around those limits. And this year, with Republicans making a concentrated effort to seize control of the state House of Representatives -- currently held by Democrats 37-33 -- PACs and other political organizations, both state and national, already have begun pouring money into the state.

"It really is like a game of Whac-a-Mole," said former state Sen. Dede Feldman, D-Albuquerque, in talking about how efforts to stop big money from influencing elections have only led to different ways for the money to flow. Feldman sponsored the 2009 bill that established campaign contribution limits. When asked if the current situation is what she envisioned when she fought for the law, she laughed. "The word that comes to my mind is circumvent," she said.

Feldman said Citizens United and the trend of more outside campaign money coming into the state has contributed to the situation. And outside groups, she said, have changed the focus of elections to "wedge issues," like driver's licenses for illegal immigrants and abortion, instead of local issues that used to dominate.

New Mexico Democrats definitely have more active PACs than Republicans and have used them to help big donors spread their money around without violating contribution limits -- $5,200 per candidate per election for a PAC. (PACs can give a total of $10,400 to a candidate in an election year, as long as the first $5,200 is given before the primary.)

But there's no limit in the state to how many other PACs a PAC can give to.

Rep. Mimi Stewart, D-Albuquerque, who heads one of her party's PACs, defended the practice of PACs giving to PACs. "This is the process we set up," she said. "The Republicans are going the route of contributing to independent expenditure groups that have no limits." And some of those groups aren't required to disclose donors, she pointed out.

There has been little, if any, evident activity of such groups so far in the state, though both Stewart and Feldman expect a flood of ads and mailers from them in the weeks before the election.

Some political committees haven't even started to fight in New Mexico. On the Democrats' side, Patriot Majority, which spent about $1 million on New Mexico races in 2012, recently got a $100,000 contribution from the American Federation of Teachers.

Two national Republican groups recently announced they will be involved in the GOP's effort to win the state House. GOPAC said it will spend money in nine House races, while the Republican State Leadership Committee recently announced it, too, will be helping Republicans in targeted seats. New Mexico Competes, a tax-exempt group with ties to Gov. Susana Martinez, recently sent out a flier praising the governor and legislators who backed the 2012 tax package. (This type of group doesn't have to report contributors or file reports with the state.)

And then there's Martinez's Susana PAC. So far it's only contributed to a handful of legislative races -- $2,000 each to incumbent Reps. Sharon Clahchischilliage of Kirtland and Kelly Fajardo of Belen and $500 to Reps. Monica Youngblood of Albuquerque and Dianne Hamilton of Silver City. But the PAC is sitting on nearly $121,000 and is expected to become far more involved in the battle for the House.

The main House races getting a lot of PAC action so far include those where Republicans are trying to oust Democratic incumbents: District 43, where Rep. Stephanie Garcia Richard of Los Alamos is facing Geoff Rodgers; District 15 in Albuquerque, where Rep. Emily Kane is running against Sarah Maestas Barnes; District 24, where Rep. Liz Thomson of Albuquerque is being challenged by former GOP Rep. Conrad James; and District 36, where Rep. Phillip Archuleta of Las Cruces faces a challenge from former Rep. Andy Nuñez of Hatch.

Republican-held seats that Democrats are making strong bids to seize include District 50, where Rep. Vicki Perea of Belen faces Matthew McQueen of Lamy; District 23 in Albuquerque, where Rep. Paul Pacheco faces Catherine Begay; District 4, where Clahchischilliage is challenged by Harrison Todacheene of Shiprock; District 37 in Las Cruces, where Rep. Terry McMillan is in a rematch with Joanne Ferrary.

Here's a guide to the major PACs in each party, where they get their money and to which candidates they give.

Democrats

Ken Martinez'sLeadership Fund, headed by the speaker of the House, has spent $215,155 so far this year. Candidates receiving money from this PAC include McQueen, Begaye and Todacheene, who each got $5,200; Garcia Richard, Kane, Thomson and Ferrary, who received $3,800; and Archuleta of Las Cruces, $3,300.

Speaker Martinez's PAC also has made contributions this year to several other political organizations, including the state Democratic Party, $10,200, and $5,200 each to the New Mexico House Majority Fund, Wolf PAC, New Mexico Defense Fund, Forward New Mexico, the Leadership PAC for Rick Mierra, New Mexico Freedom, A Strong New Mexico and Our New Mexico, headed by Sen. Jacob Candelaria, D-Albuquerque. Most of these groups have recycled the money to House candidates in the most competitive races.

The biggest donor to Martinez's PAC was Plumbers & Steamfitters Local No. 412, which gave $5,500. Giving $5,200 were Red Mesa Wind, Ruidoso Horse Sales, Ohkay Owingeh, Isleta Pueblo, the Democratic Legislative Campaign Committee, Rep. Luciano "Lucky" Varela, the Committee on Individual Responsibility, Greg Lamantia of McAllen, Texas, and Taos rancher Ed Healy. The Southwest Regional Council of Carpenters gave $5,000.

The Committee on Individual Responsibility, a trial lawyer's organization, has spent $118,927 so far. The group spends nearly all its money on Democratic candidates and PACs, although it gave Rep. Zach Cook, a Ruidoso Republican (and lawyer) $5,200 this year. Cook is running unopposed. The only non- legislative candidate to get money from this PAC was Hector Balderas, the Democratic candidate for attorney general, who got $10,400. Virtually all contributors are New Mexico lawyers. A handful of individual contributions were $1,500, but most were under $1,000. The PAC has nearly $148,000 in cash on hand.

The DLCC New Mexico Committee, based in Washington, D.C., spent $57,200 so far in the state. The committee gave $5,200 each to other PACs, which in turn gave to House candidates. The other committees include the similarly named New Mexico DLCC, the speaker's Leadership Fund, Leadership PAC for Rick Miera, Viva New Mexico, the Keep NM House Majority Fund, New Mexico Freedom, the New Mexico Defense Fund, the New Mexico House Majority Fund, Forward NM PAC, Wolf PAC and Strong New Mexico.

Contributors that gave $10,000 include Altria, the parent company for the Philip Morris tobacco company; Check into Cash, an online payday loan company; the Direct Selling Association; Intuit, a financial software company; and National Nurses United for Patient Protection; State Associates of Arlington, Va., a lobbyist firm, gave $8,000; and the group got $5,000 each from the International Brotherhood of Boilermakers; Alpha Natural Resources Services, a coal company; Steptoe & Johnson, a west Virginia law firm; First Energy Corp. of Baltimore and Cliffs Natural Resources Inc., an Ohio-based mining company.

All of the PACs listed below got contributions from the three PACs listed above.

New Mexico Freedom is associated with Rep. Bill McCamley, D-Las Cruces, though former state Democratic Party executive director Scott Forester is listed as its president. The PAC has spent nearly $32,790 so far in this election. It handed out $5,200 to Thomson, Kane, Garcia Richard and Archuleta; $2,500 to Ferrary; $1,500 to Mariaelena Johnson of Chaparral, who is running against former Rep. Ricky Little for an open seat; and $1,000 to McQueen, Todacheene and Begaye. Contributors include the American Federation of Teachers, which gave $5,200, and retiring state Rep. Henry "Kiki" Saavedra, who gave $5,000.

New Mexico Defense Fund, created in 2012, is headed by state Rep. Brian Egolf, D-Santa Fe. It has spent more than $25,000 in this election, including $5,000 each to McQueen, Kane and Ferrary, and $2,500 to Todacheene and Begaye. The fund also gave $5,000 to another PAC, the Keep NM House Majority Fund. Contributors to Egolf's PAC this year include the American Federation of State, County and Municipal Employees, the American Federation of Teachers and Egolf's own campaign committee. (He's running unopposed.) Q. Cook, a former board president of the Santa Fe Chamber Music Festival, also contributed $5,000. The PAC had more than $11,000 in the bank in early July.

New Mexico House Majority Fund, chaired by Stewart, has spent more than $25,000 so far this year, giving $5,000 to candidates Johnson, Garcia Richard, Thomson, Kane and Archuleta. Contributors include AFSCME, $5,200; the Albuquerque Teachers Federation, $2,700; and American Federation of Teachers Solidarity PAC, $2,250. As of July 3, this fund had just over $1,000 in the bank.

Forward NM PAC was established by Rep. Gail Chasey, D-Albuquerque, two years ago. So far this year, it has spent a little more than $25,000. Recipients included Garcia Richard, $5,200; Thomson, Kane and Archuleta, $5,000 each; and McQueen and Todacheene, $2,500 each. Contributors include AFSCME, which gave $5,200. The PAC had a balance of $1,127 in the bank in early July.

Wolf PAC is headed by House Democratic Whip Antonio "Moe" Maestas, D-Albuquerque. It's spent $20,750 so far this year, giving $5,000 each to Kane, Archuleta, Begaye and Ferrary, as well as $5,000 to the Keep NM House Majority PAC. Donors include AFSCME, $5,200.

A Strong New Mexico is associated with Debbie Armstrong, a Democrat and former Cabinet secretary now running unopposed for an Albuquerque House seat. The PAC has spent $20,450 this year. Recipients include Thomson, $5,000; Catherine Begay, $3,700; Keep New Mexico House Majority, $5,000; Ferrary, $1,500; Archuleta, $1,500; McQueen, $1,500; Todacheene, $1,500; and Kane, $1,000. Contributions include $5,200 from AFSCME and $3,000 from U.S. Rep. Michelle Lujan Grisham's campaign. A Strong New Mexico has just over $4,000 in cash on hand.

Republicans

Builders Trust, which provides workers' compensation insurance for the construction industry, isn't really a PAC, but it's spent more than $116,00 on candidates this year -- mostly Republicans, and contributed another $42,600 on other political organizations. Gov. Martinez and Secretary of State Dianna Duran each got $10,400. Republicans in competitive House races also received contributions: Reps. Fajardo and McMillan, Rodgers and former Rep. Little each got $9,600; and incumbent Reps. Perea, Clahchischilliage and Pacheco, and challengers James, Maestas Barnes and Nuñez of Hatch each got $4,800. Builders Trust also contributed to a handful of conservative Democratic incumbents, some of whom, like Mary Helen Garcia and Patty Lundstrom, had primary challengers.

The PACs that got money from Builders Trust are the New Mexico Home Builders Political Action Fund, $11,400; Susana PAC and NM Future PAC, $10,400 each; and Progress New Mexico and the Republican Leadership PAC, $5,200 each.

New Mexico Forward, led by former Rep. David Doyle, R-Rio Rancho, has spent $25,752 this election cycle. Among those getting money are Rogers, $4,000; David Adkins, who is running for an open Albuquerque House seat, $1,600; and Maestas Barnes and Clahchischilliage, $1,000 each. Doyle also gave $5,200 to the Republican Leadership PAC. Donors include Farmers Insurance and Rock House construction of Albuquerque, $10,400 each; Devon Energy of Oklahoma City and Builders Trust of New Mexico, $5,200; and Consumer Installment Loan Association of New Mexico, $5,000.

Republican Leadership PAC, headed by House GOP Whip Nate Gentry, R-Albuquerque, has spent $68,619, but little of that has gone to candidates. Those who have received contributions are McMillan, $1,500, and Pacheco, $500. This PAC has raised more than $105,000. Contributors who gave $5,200 include William Windham of Louisiana, one of the owners of The Downs at Albuquerque, Devon Energy, Farmers Underwriters Association, Builders Trust of New Mexico and New Mexico Forward PAC. Steve Maestas, who is in the real estate business in Albuquerque, gave $5,000.

Contact Steve Terrell at [email protected]. Read his political blog at www.santafenewmexican.com/news/blogs/politics.

This story was changed to reflect the following correction:

Correction July 27, 2014

An earlier version of this story said that Susana PAC hadn't yet contributed to any legislative races this election cycle. In fact the PAC did contribute to some incumbent lawmakers' campaigns.

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